Natural resources
Arctic LNG-1 wins exploration and production license on Gydan Peninsula
© RIA Novosti. Sergey Krasnoukhov

Arctic LNG-1 wins exploration and production license on Gydan Peninsula

Novatek's subsidiary Arctic LNG-1has received the right to use a federal area that includes the Gydansky block in the Yamal-Nenets Autonomous Area, the Russian Government announced on its website. Prime Minister Dmitry Medvedev has signed a directive to assign the geological survey, exploration and hydrocarbon production rights to the company.

"Following an auction, the right to use a federal subsoil area that includes the Gydansky block in the Yamal-Nenets Autonomous Area for the purposes of geological survey, exploration and hydrocarbon production under a Universal E&P License has been assigned to Arctic LNG-1," says the press release.

The auction for the Gydansky license area was held under a government decision of April 6, 2017. The bidders were Arctic LNG-1 and Novatek-Yurkharovneftegaz.

RIA Novosti writes that Natural resources Minister Sergei Donskoi announced in June 2017 that Arctic LNG-1 won the auction and would pay 2.26 billion rubles for the right to develop the Gydansky block.

According to the Russian classification, the license area is regarded as a large prospective field. Its reserves are estimated at 58.3 billion cubic meters (bcm) of C1 gas and 57.7 bcm of C2 gas, and its resources are estimated at 361.4 bcm of C3 gas. The recoverable resources of C3 gas condensate are estimated at 31.8 million tons.